2 LTTS share price target reports by brokerages below. See what is analyst's view on LTTS share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We maintain our conviction on LTTS based on (1) Preferred pick in ER&D on diversified vertical mix (low concentration risk) and niche position in Process Industry and Industrial products, (2) At an inflexion point with stability/recovery expected in Telecom & Hi-tech vertical, (3) Strong account mining engine with T30 program (>USD 10mn client bucket had 3 additions QoQ). Expect USD rev/EPS CAGR at 12.5/15.2% over FY19-22E factoring USD rev growth at 10.1/12.2/15.1% and EBIT% at 17.1/17.0/17.5% for FY20/21/22E, respectively. Key risk continues to be macros, trade war escalation (Industrial products vertical).
We maintain BUY on LTTS despite the EPS downgrade (~5%) on weak near-term outlook (2Q nos were in-line). While relative outperformance continues, deceleration in growth trajectory limits our optimism. Our TP is Rs 1,705, based on 18x Sep-21E (20x earlier).
We maintain BUY on LTTS following an in-line 1Q performance. We lower est. by ~3% to factor near-term weakness in Telecom/Hi-tech vertical, however broad- based wins/pipeline provide growth visibility (continues to be industry leading). Our TP is Rs 1,955, at 20x Jun-21E EPS.
We reduce our revenue estimates by 2.6% & 3.4% in FY20E/21E to factor in weakness of Communication, Hi-Tech (~23% of total revs) & lower guidance.Hence, our EPS gets revised downwards by ~2.5%/ ~3.1%. We believe the volatility in management commentary can weigh on the premium multiples. We believe conversion of deal pipeline especially in Hi-tech will be keenly watched. We expect USD revenue & EPS CAGR of 13% & 9% from FY19-FY21E respectively. We value at LTTS at 20X FY21E earnings to arrive at a change target price of Rs.1693(Earlier: Rs.1835). The stock currently trades at 20.6X/18.9X FY20/21E EPS of Rs. 77 & Rs.85. Maintain Accumulate.
We expect USD revenue & EPS CAGR of 15% & 10% from FY19-FY21E respectively. We value at LTTS at 21X FY21E earnings to arrive at a change target price of Rs.1835(Earlier: Rs.1807). The stock currently trades at 21.2X/19.2X FY20/21E EPS of Rs. 79.4 & Rs.87.4. Maintain Accumulate.
LTTS has also reported average RoE of 27% during the last 2 years, and looking at the improvement in both operating and net profitability going ahead we expect that over the next 2-3 years this is likely to cross 29% by FY21 with Roce expected at around 32% Hence going ahead we expect that LTTS has the capability to sustain the robust financials performance given its strong business performance and significant cash generation expected ahead. We expect that going ahead overall bottomline growth in the next 3 years starting FY19 onwards should increase at a CAGR of 23-25% and going ahead also we believe that net cash flows generated will remain healthy going ahead.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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